Net Leased Offering

8/8/2019 Net Leased Offering

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NET LEASED INVESTMENT OFFERI

Save-A-Lot

NEC of E. 63rd Street and Calumet AvenueChicago, IL

CONFIDENTIAL OFFERING MEMORANDUM

www.bouldergroup.com

Representative P


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NET LEASED INVESTMENT OFFERING


TABLE OF CONTE

TABLE OF CONTENTS

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

Confidentiality & Disclaimer

Executive Summary

Property Overview

Site Plan

Aerial

Maps

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information


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CONFIDENTIALITY & DISCLAIM

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or ent

without the written consent of The Boulder Group. This Marketing Brochure has been prepared to provide summa

unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject prope

The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has

made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subj

property, the future projected financial performance of the property, the size and square footage of the property a

improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State a

Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects

any tenant, or any tenants plans or intentions to continue its occupancy of the subject property. The information contained

this Marketing Brochure has been obtained from sources we believe to be reliable; however, The Boulder Group has n

verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigat

regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of t

information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.


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EXECUTIVE SUMMA

EXECUTIVE SUMMARY

Newly renovated grocery building to be completedin early 201110 year lease with increasing renewal optionsCorporately owned Save-A-Lot locationSave-A-Lot has over 1,200 locations withsignificant growth plansLocated in a dense area of ChicagoLess than a quarter mile from two majorinterstates

Directly adjacent to a Chicago Transit AuthorityGreen Line stationDense in-fill areaHigh sales expected as property is located in anarea with limited grocery options

The Boulder Group is pleased to exclusively offer for sale a Save-A-Lot grocery store property in the city of Chicago. The propis tenanted by Save-A-Lot which recently signed a ten year lease in a newly rehabbed building. The property is located less tseven miles south of Downtown Chicago in the Washington Park community. This infill area is one of the most dense heavily populated neighborhoods of Chicago with multiple barriers to entry. The property will benefit from over 27,000 vehipassing the site daily as well as significant pedestrian traffic. The property is located adjacent to a Chicago Transit AuthGreen Line Station which will allow residents of Washington Park and nearby neighborhoods convenient access to grocery. Save-A-Lot tenanted this building as it is located in a food desert and expects to have a high sales volume: Fdeserts are areas that lack access to affordable fruits, vegetables, whole grains, low-fat milk, and other foods that make up

full range of a healthy diet.

The Washington Park neighborhood is an urban infill area with multiple attractions and amenities. The focal point of the area 372 acre park where residents enjoy an abundance of activities. Washington Park is less than a quarter mile from bInterstates I-90 and I-94 which provide steady traffic flow throughout the area. There are over 231,700 vehicles that trthese interstates daily. Washington Park is located just west of The University of Chicago which has over 15,000 students. immediate area is home to national retailers such as Walgreens, AutoZone and McDonalds.

Save-A-Lot has a ten year lease with an expected rent commencement date of February 1, 2011 with increasing reneoptions. The rental rate will increase in each of the five year renewal periods. Save-A-Lot is a wholly owned subsidiarSupervalu which is the nations fourth largest food retailer. Moran Foods (see Tenant Profile section) is the operator of particular location and has been associated with Save-A-Lot since 1977. This is an ideal location for Save-A-Lot due to

areas population densities, the lack of fresh food options, and location across from the neighborhoods elementary school

Investment Highlights

Representative Pho


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PROPERTY OVERV

PROPERTY OVERVIEW

Price:

Cap Rate:

Net Operating Income:

Renewal Options:

Renewal Rent*:

Lease Commencement Date*:

Lease Expiration Date*:

Tenant:

Year Built

Lease Type:

Building Square Footage:

Land Square Footage:

Parking Spaces:

$2,423,500

8.50%

$206,120

Four 5-Year

$224,410 February 1, 2016

$238,700 February 1, 2021

$254,990 February 1, 2026

$254,990 February 1, 2031

February 1, 2011

January 31, 2016

Moran Foods, Inc. d/b/a Save-A-Lot

2011 full rehab of existing building

NN

16,290

33,132

34 stalls with additional street parking

*All dates are estimates and subject to change, as the improvements are currently under construction.


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SITE P

SITE PLAN


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AER

AERIAL

I-94187,600 VPD

I-90 / I-94231,700 VPD

I-9042,900 VPD

DullesElementary School


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SITE



MA

MAPS

SITE

SITE


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TENANT PROF

TENANT PROFILE

Website:Number of Locations:Company Origination:Store Operations:Plans:

www.save-a-lot.com1,200197739 statesDouble locations in five years

owned and operated location. Save-A-Lot grocery store network spans from Maine to California, serving morethan 4 million shoppers each week. In 2009, Save-A-Lot hired a former Wal-Mart executive to help the companythrive in this economic time period. The company has a five-year plan to double the number of Save-A-Lotlocations, of which 75% are run by franchisees.

The company procures, distributes and markets a carefully selected assortment of high quality food andhousehold needs, emphasizing their own exclusive brands. The highly efficient supply chain enables Save-A-Lot to sell at prices well below other retailers.

Save-a-Lot was founded in 1977 by Bill Moran and Chase Gabbard and was later acquired by Supervalu in1992. Moran Foods, Inc. is the tenant for the subject asset and has been in the grocery business for over thirtyyears. Despite being an independent retailer using the Save-A-Lot brand, they are an integral part ofSupervalu. Moran Foods has assets over $1 billion and sales that exceed $3 billion.

Save-A-Lot is a wholly owned subsidiary of SUPERVALU INC.,(Fortune 100 company) and one of the largest companies in theUnited States and the fourth largest food retailer. Save-A-Lot isone of the nation's leading extreme value, carefully selectedassortment grocery chains, operating nearly 1,200 value-orientedstores in all types of neighborhoods urban, rural and suburban.More than two-thirds of the stores are licensed; the rest arecompany owned and operated. The subject property is a company


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DEMOGRAPHIC COMPARISON REP

DEMOGRAPHIC COMPARISON REPORT

Population

2009 Total Population

2009 Total Households

2009 Daytime Population

Income

2009 Median Household Income

2009 Average Household Income

1-mile

34,337

12,582

31,991

$40,757

$19,971

3-mile

339,938

127,121

269,542

$50,949

$29,775

5-mile

760,504

267,645

599,075

$53,386

$34,415

Representative Photo


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LOCATION OVERV

LOCATION OVERVIEW

he Washington Park neighborhood is one of Chicagos (only 7 miles from the Loop) most well-defined commu

reas. The neighborhoods central focus is the 372 acre park named Washington Park, stretching east-west f

ottage Grove Avenue to the Dan Ryan Expressway, and north-south from 63rd Street to 51st, and is home of

uSable Museum of African American History. The park was the proposed site of the Olympic Stadium and the Olym

quatics Center in Chicago's bid to host the 2016 Summer Olympics.

ncluding the park, the community area hosts two listings on the National Register of Historic Places. The park in ommunity area was named for President George Washington in 1880. In the 1920s, the University of Chic

reated the community area system of city subdivision with the current names that continue to be used tod

Washington Park is a social center of the South Side and hosts many festivals in the summer, including Chicago's b

rganized cricket league and the terminus of the Bud Billiken Parade and Picnic. The largest 16" softball leagu

hicago is played there on Sundays (called "Sunday's Best Softball League"). There are 34 teams who play on

iamonds. There is also a weekday evening league.


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CONTACT INFORMAT

CONTACT INFORMATION

Randy Blankstein

President

847.562.0003

[email protected]

Jimmy Goodman

Partner

847.562.8500

[email protected]

666 Dundee Road Suite 1801

Northbrook, IL 60062

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